AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
82.98 USD
+0.47 (+0.57%)
82.98 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AIR. AIR was compared to 71 industry peers in the Aerospace & Defense industry. AIR has an average financial health and profitability rating. AIR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
AIR had a positive operating cash flow in the past year.
AIR had positive earnings in each of the past 5 years.
Each year in the past 5 years AIR had a positive operating cash flow.
1.2 Ratios
AIR has a Return On Assets of 0.99%. This is comparable to the rest of the industry: AIR outperforms 47.89% of its industry peers.
AIR has a Return On Equity of 2.31%. This is comparable to the rest of the industry: AIR outperforms 50.70% of its industry peers.
With a decent Return On Invested Capital value of 8.79%, AIR is doing good in the industry, outperforming 77.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIR is in line with the industry average of 8.53%.
The last Return On Invested Capital (8.79%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROIC | 8.79% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
With a Profit Margin value of 1.01%, AIR perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
AIR's Profit Margin has improved in the last couple of years.
AIR's Operating Margin of 9.31% is in line compared to the rest of the industry. AIR outperforms 59.15% of its industry peers.
AIR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 19.04%, AIR is doing worse than 64.79% of the companies in the same industry.
AIR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
AIR has more shares outstanding than it did 1 year ago.
AIR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.35 indicates that AIR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.35, AIR is in line with its industry, outperforming 49.30% of the companies in the same industry.
AIR has a Debt/Equity ratio of 0.82. This is a neutral value indicating AIR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, AIR is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.35 |
ROIC/WACC0.85
WACC10.3%
2.3 Liquidity
A Current Ratio of 2.91 indicates that AIR has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.91, AIR is doing good in the industry, outperforming 60.56% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that AIR should not have too much problems paying its short term obligations.
AIR's Quick ratio of 1.31 is in line compared to the rest of the industry. AIR outperforms 46.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.83% over the past year.
The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
The Revenue has grown by 17.59% in the past year. This is quite good.
The Revenue has been growing slightly by 6.06% on average over the past years.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
3.2 Future
The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.07% on average over the next years.
EPS Next Y15.97%
EPS Next 2Y16.54%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue Next Year10.56%
Revenue Next 2Y8.87%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.09, which indicates a rather expensive current valuation of AIR.
AIR's Price/Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 91.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, AIR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.67, the valuation of AIR can be described as correct.
90.14% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
AIR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 90.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.16 |
4.3 Compensation for Growth
AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AIR's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)1.26
PEG (5Y)1.58
EPS Next 2Y16.54%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
AIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.98
+0.47 (+0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change7.13%
Ins Owners2.4%
Ins Owner Change-1.02%
Market Cap3.28B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target88.82 (7.04%)
Short Float %3.06%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)0%
PT rev (3m)4.08%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)4.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.09 | ||
| Fwd PE | 15.67 | ||
| P/S | 1.15 | ||
| P/FCF | N/A | ||
| P/OCF | 334.97 | ||
| P/B | 2.63 | ||
| P/tB | 6.83 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)4.13
EY4.98%
EPS(NY)5.3
Fwd EY6.38%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.3%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.26
PEG (5Y)1.58
Graham Number54.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROCE | 11.13% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 13.64% | ||
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 64.78% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 3.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.35 |
F-Score6
WACC10.3%
ROIC/WACC0.85
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.97%
EPS Next 2Y16.54%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year10.56%
Revenue Next 2Y8.87%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year36.67%
EBIT Next 3Y21.14%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
Can you provide the valuation status for AAR CORP?
ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AAR CORP (AIR) stock?
The Price/Earnings (PE) ratio for AAR CORP (AIR) is 20.09 and the Price/Book (PB) ratio is 2.63.
What is the financial health of AAR CORP (AIR) stock?
The financial health rating of AAR CORP (AIR) is 4 / 10.